Does your company invest in “dead peasant” life insurance?
Buying life insurance for top executives — key man policies — is standard practice in Big Business. But some companies also purchase life insurance on blue collar workers — sometimes without the workers knowledge.
“Since gaining popularity in the 1980s, companies have been taking out Corporate Owned Life Insurance policies on employees and listing themselves as the beneficiary. Many workers go about their workday with no clue that such policies exist and that their company has placed a bet on their timely (at least from an actuarial standpoint) death,” Joe Mont writes in a piece for The Street, a financial media website.
Talk about creepy. Here’s the full story. Very interesting reading.
The Street: Why Your Company May Want You Dead